Thursday, September 11, 2008

Genocide in Stock Market

I couldn't find a better word to describe what i saw in the stock market. Genocide... certainly an appropriate word. Look at the badly battered stocks...I almost couldn't recognise some of them... When was the last time we saw Cosco below $2??? The chart looks damn familiar.... it looks like a dessert which i long time no eat... Ice KaChang... hearsay Bedok interchange sell the best?

I covered my Dow and HSI shorts on Tuesday to reduce my risk exposure while still keeping noble grp. Technically this stock looks "holland" to me and what's more, with the market paying alot of attention to oil and commodities weakness, it will cap any rebound and aid in the sell-down. If you have followed my blog long enough, you know my style is to stick with the trend. It is quite obvious that this is a bear market and a downtrend. The only time which had me second guessing is during the june to july period where market is trading sideways, and the breakout to either direction have everyone guessing. Since the day it broke 3k, the risk/reward favour short positions. That is the direction I have been trading since then. CFD is very convenient nowadays and as a market technician, you should make use of this tool. If you are only waiting to long... then you would have miss out on great opportunity to profit from the bear market. If you want to find out more about using CFD to short, check back at this blog, because i may organise a CFD workshop.
Banking stocks cracked, today really is heavy dumping accross the board. Those who wish to pick up dividend plays, this maybe a good time, however, whether dividend will reduce or not, it's anybody's guess. The sector to watchout for will be Marine, this sector is cyclic in nature, hence once over, may take a few years to come back. Looking at the share price, there could be more room to fall.
I did a screen with XPertTrader, a couple of bullish divergence is spotted. The relief rebound everybody is waiting for maybe near. But question is, do you want to trade against the current trend? For me, i may let the market rebound and then short stocks which i have shortlisted at resistances. Meanwhile, i'm happy to ride noble grp and then trade hsi and dow. Forex was also on my radar, but i feel abit too stretched to monitor too many markets at the same time. Hence i prefered indices over forex. Also, although at ChartNexus, we are allowed to trade during office hours, i cannot neglect my work. Hence position trading is more suitable for me.
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